Driven Brands Holdings Inc. · NASDAQ:DRVN
Driven Brands — Investor Presentation (2011)
33 slides from Driven Brands's investor presentation, Nov 25, 2011
Slide 1: America's Body Shop: Collision Repair & Auto Painting
VITAL " COLLISION REPAIR & AUTO PAINTING “1 IFNITIEFHCA''S BODYSHIOP: } 7
Slide 2: Franchise Opportunity: The Road to Financial Freedom
FRANCHISE OPPORTUNITY The Road to Financial Freedom
Slide 3: Are You Ready to Take Charge of Your Life
ARE YOU READY TO TAKE CHARGE OF YOUR LIFE. • Incredible Earnings Potential • Proven Operating System • Instant Brand Recognition • Recession-Resistant Business • No National Competition • High Volume Business RANKED #1 IN CLASS IN 2011 RANKED 84 TH OVERALL IN 2011 3
Slide 4: Franchising Facts
FRANCHISING FACTS $278.6 Billion 11 Million Payroll Dollars Contributed to The Number of Franchising Jobs Contributed by Franchising 1 Million Plus Ken Walker Number of CEO of Driven Brands Franchise Units in serves as the 2010 the U.S. Chairman of the International Franchise Association
Slide 5: Driven for Success
DRIVEN FOR SUCCESS Nearly 1 Billion Dollars in Combined Annual Sales.
Slide 6: Market Breakdown
MARKET BREAKDOWN Total sales in the collision repair industry. $43.0 The Industry Is Recession $41.1 Resistant and Growing $39.4 $37.7 In Billions 2009 2010 2011 2012 Estimated Collision Repair Receipts. Source: 2011 AAIA Factbook
Slide 7: Maaco Today
MAACO TODAY • Today 56% of Maaco’s revenues are • Today 44% of Maaco’s revenues come generated from spot repair: Spot repair from overall paint jobs. can be defined as minor cosmetic and dent repair. Regardless of repair type the average vehicle is returned in 72 hrs.
Slide 8: Market Breakdown
MARKET BREAKDOWN In 2011, total sales in the collision repair industry are estimated $41.1 Billion. Collision and Paint Market $40.1 Billion Painting Market Cosmollision $1 Billion $9 Billion Drivable hits for under $2,500. Mostly consumers who are reluctant to submit an insurance claim Collision Ma
Slide 9: A Production Model
A PRODUCTION MODEL VJaagew, PITIEGRICA'S BODYSHOF 120° 2 ss paint storage & mixing room (H-3 liquid storage rm) = ge rm) Tes 2 TTooonl 7 TT ] asking | z | |booth! } {oven Detail & Delivery | - | a } 3 8 26° 24 - 50" 2 production office Production Flow i= | = tales 12" i 136 76 15° 120° BUILDING AREA
Slide 10: Why This Industry
WHY THIS INDUSTRY Americans Love their Cars and they love MAACO! Vehicle Population More than 230.5 million vehicles on U.S. Roads We have serviced more than 16 million customers } 500,000 customers/year Average Age of Vehicles 2010 = 10.6 years old 2010 new light vehicle registrations rose 10.6% fr
Slide 11: Industry Trends
INDUSTRY TRENDS Sales $1,045,434 Comparison $590,541 Average Average Certified Independent MAACO Store Repair Shop Volume Sourced from 2010 AAIA Factbook
Slide 12: Maaco Unit Economics
MAACO UNIT ECONOMICS Description Total % Average Revenue 1MM + $1,346,727 100% Direct Labor ($299,680) 22.3% CGS ($288,652) 21.4% Other Direct ($13,945) 1.0% Gross Profit $744,450 55.3% Indirect Labor ($114,011) 8.5% *See Item 19 of our Franchise Disclosure Document for additional Fixed Expenses ($1
Slide 13: Maaco vs. the Average Body Shop
MAACO vs. THE AVERAGE BODY SHOP MAACO stores with sales more than $1 million average $189,964 profit!* *See Item 19 of our Franchise Disclosure Document for additional information about financial performance of our stores.
Slide 14: Real Estate & Financing
REAL ESTATE & FINANCING • Site Selection Assistance • Own your own property • Lease Negotiation • Construction Assistance Assistance • Equipment Installation • Financial Preparation
Slide 15: Training & Support
TRAINING & SUPPORT A proven method for Success
Slide 16: National Accounts
NATIONAL ACCOUNTS MAACO National Account Advantage: TRADE FLEET INSURANCE • National fleet revenue programs. • Central billing allows for quick payments. • Maaco has flexible options. Other companies have to use rigid guidelines. • Library of Repair Directives by Vehicle Type for franchisee use. In
Slide 17: Branded Promotions
BRANDED PROMOTIONS A Proven Method for Success Printz Advertising • In-house Media Buyers • Local Purchasing • Monthly Reconciliation • Yellow Pages, TV, Radio, Internet • All Creative Is Free! “Uh-Oh…Better Get MAACO”® Maaco 2010 Commercial
Slide 18: Owner's Role
OWNER’S ROLE • Manage Customers and Sales • Manage Fleet and Trade • Community Involvement • Manage Production • Manage Finances • Healthy Lifestyle • Wealth Building
Slide 19: Investment Overview
INVESTMENT OVERVIEW Analysis of Investment Total Franchise Fee $ 40,000 Minimum Requirements: Total Start-Up Expenses $ 58,000 • $90,000 from Non-Borrowed Funds Total Opening Items $ 153,500 • $250,000 - $300,000 Net Worth Miscellaneous Start-Up Expenses $ 45,000 • Good Credit: Score of 700+ Total E
Slide 20: Franchise Purchase Time Frame: 30-45 Days
FRANCHISE PURCHASE TIME FRAME: 30-45 DAYS Introduction (Week 1 - 2) • Inquiry and Introductory Phone Call • Review Information Package • Fill Out Questionnaire • Preliminary Approval Research (Week 3 - 4) • Review Franchise Disclosure Document • MAACO Presentation and Discussion • Due Diligence • Fi
Slide 21: After Becoming a Maaco Franchisee
AFTER BECOMING A MAACO FRANCHISEE 1. Project Coordinator Assigned 2. Real Estate Expert Assigned 3. Financing Manager Assigned 4. Training & Opening Support 5. Equipment & Inventory Purchased and Installed 6. Open Center with Operations Manager
Slide 22: Why Maaco?
WHY MAACO? • Average $189,964 profit when sales over $1 million* • Instant Brand Recognition • No National Competition • Proven Operating System RANKED #1 IN CLASS IN 2011 • Nearly 500 MAACO Locations in Operation RANKED 84 TH • Nearly 40 Years Experience OVERALL IN 2011 • No Experience Necessary •
Slide 23: Questions
PUITTIERICA'S BODYSHOFP’
Slide 24: Maaco Advantage Program
sO MAACO ADVANTAGE PROGRAM Wy oka REPAIR & AUTO PAINTING * THE ULTIMATE TRANSFORMATION
Slide 25: Maaco Advantage
MAACO ADVANTAGE Stimulate Your Shop with Incremental Revenues • The average body shop Average Body Shop completes 9.4 jobs per week 2009 vs. 2010 Percent of Shops Sales • MAACO averages 25 completed Increased 40% jobs a week Decreased 42.5% Stayed the same 17.5% At MAACO the number of jobs TOTAL 100
Slide 26: Maaco's Retail Operation
MAACO’S RETAIL OPERATION is 100% Incremental Growth to Your Business. Maaco is Non DRP Reliant Maaco Certified Sales Average. Less than 10% Reliant on DRP Average Body Shops Are you losing $125,000- $250,000- $350,000- $750,000- Over $1 business due $249,999 $349,999 $749,999 $1 million million to s
Slide 27: Sales Volume
SALES VOLUME for the Independent and Dealer Body Shops, 2008 $1 Million + Up to $249,000 Maaco Certified centers 26% average $1,045,434 a year in revenue. 34% 10% $750,000 - $1 Million 20% 10% $250,000 - $349,999 $350,000 - $749,000
Slide 28: An Incremental Growth Model
AN INCREMENTAL GROWTH MODEL • National Branding • Production Model • Proven Business System • Incredible Buying Power (we will reduce your costs) • Supports and Training • Incremental Retail Revenues you cannot achieve on your own. • We are the only National Brand out there.
Slide 29: Maaco Advantage Conversion Program
MAACO ADVANTAGE CONVERSION PROGRAM Royalty Rebate*: Year 1 - 75% | Year 2 - 50% | Year 3 - 25% *Royalty Rebates based off acquired centers sales revenues Before Item Amount Discount Net License Fee $40,000 ($20,000) $20,000 After Training $23,000 ($13,000) $10,000 Advertising $30,000 ($15,000) $15,0
Slide 30: Testimonials
TESTIMONIALS “We’ve had trainers come out and work hand-in hand with our guys on production to maximize efforts. It’s access to resources like that that convince me that becoming a Maaco was the best thing I ever did. It’s like having your very own business consultant.” -David Lelm Kailua Kona, HI “
Slide 31: The Future of Car Care
THE FUTURE OF CAR CARE Summerville, SC 31
Slide 32: Are You Ready to Start Saving?
ARE YOU READY TO START SAVING? National Buying Programs with All Major Suppliers • Wet Goods: paint, solvents, etc. • Dry Goods: sandpaper, tape, filters, etc. • Equipment Complete our confidential questionnaire to start your free evaluation
Slide 33: Maaco vs. an Independent
MAACO VS. AN INDEPENDENT • Conventions • Network of Peers • Operations Support • National Accounts • National Marketing • Tech Expo • Supply Programs